Hey, happy Tuesday!
That today, however, is a bit like a Monday.
I swear I didn’t do it on purpose to make Note number 90 coincide with the one at Halloween time.
Which then is not even an Italian holiday but one of the many cultural short circuits we accept as a consequence of being able to live in one big “connected village” that as I write this sounds so much like retro now that we are talking about the Metaverse (don’t worry, I don’t want to tell you about it too…).
Skipping a Monday was interesting.
It is part of the few human principles I chose to adopt for this project. If it is true that STRTGY protect your time then it would have been a nonsense as well as unnecessary to add my voice to marketing communications that follow a mechanical, annoying, and unstable plan that puts everything in the center except the people they are supposed to address.
Unfortunately, I have a thing for things done well, and marketing is done well not only when it is synchronized with the company’s bottom line but more importantly when it is with the lives of those who decide to listen to you.
Skipping a Monday was interesting because it allowed me to realize that someone missed something yesterday. And that “something” is actually a great thing, indeed it is the important thing to understand, to probe, to measure.
Like when a love ends.
Like when an object disappears.
It is the absence that reveals the value.
Is it worth investing in something that, if it were gone tomorrow, no one would miss it?
If you are here I can imagine your response.
It is the right one.
There is no need to go further, if you want you can stop here the value of this note you have already gathered.
After that there is technique. Which is important, because in Tennis as in Business…
There is no such thing as bad luck. Only bad technique.
– Mats Wilander, 1988 World Tennis Champion
Good work!
Be heard and remember…
Always Make Progress.
● Products / Doing things that people love.
How to Calculate Your Product Market Fit (PMF)
Let’s keep it simple the way we like it at STRTGY.
PMF is a number. To be exact, it is a percentage.
To calculate it you have to take the number of people who gave a particular answer to a specific question and divide it by the total number of people who answered it.
The question is:
How would you feel in case you could not use “product-name”?
And the possible answers are:
✓ Very sorry
▢ A little sorry
▢ Not sorry (actually not that useful)
▢ Irrelevant – I don’t use “product-name” anymore.
The only answer that matters is “Very sorry.”
You have reached the PMF if:
40% of the respondents will have stated that they would be “Very sorry.”
Everyone should have this number in the center of their control panel to make sure they are committed to creating a product that people want rather than investing without return in making people want your product…
The PMF represents the best segment of customers who depend on your product for their own progress.
Imagine if you no longer had Instagram… or Whatsapp… or Slack… or Jira… or Trello… or Notion… or even Netflix… not only would you be sorry, for some of these you would even be in trouble!
You have not reached the PMF if.
the percentage of people who answered “Very sorry” is less than 40%.
Not me, but Sean Ellis, the daddy of Growth Hacking, who invented this test that bears his name and defined this threshold based on hundreds of interviews and found that companies with growth problems had a PMF of less than 40 percent.
Segment and optimize.
Don’t stop at the number. By itself it means nothing.
Segment the responses by identifying characteristics common to the groups of users who gave similar responses and compare them with those in the segment that answered “Very sorry.” What do you see?
In order of priority:
➀ shift your acquisition efforts to similar users who will miss you most if you were to disappear. You will have lower acquisition costs.
➁ prioritize the roadmap for these users and make sure they do not leave.
➂ create a system to measure temperature constantly. Incorporate PMF calculation into your product development routines. Just because you have a good PMF today does not mean it will be the same tomorrow.
● PMF in practice
👻 Poof! If STRTGY were to disappear, how would you feel?
8 very short questions but will help to improve STRTGY
Answer the PMF Survey by. STRTGY
● Links
❤️ Calculate your PMF for free with a tool invented by Sean Ellis.
📧 The most productive leaders in Silicon Valley (and beyond) use this software that costs $30/month to read and respond to their emails. It’s called Superhuman and have put PMF at the very center of their own growth engine. To be read and printed.
📈 Don’t like asking questions? Then check out this issue: Net Revenue Retention Rate. Like the best metrics, it is a ratio and represents how much of your users are taking more than one ride on your ride. Spoiler: if below 100% there is something wrong.
